Bill Janeway, partner at Warburg Pincus, explains where venture capital belongs in the innovation spectrum relative to fundamental scientific research.
“I mean funding science. Rather than funding, funding the commercialization of technology and finding commercially valuable new innovative applications of technology.”
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More from Bill Janeway
PredictionNot checkable as stated
Janeway: Non-traditional late-stage tech investments will end in painful correction
“Now, when you see investors, hedge funds, mutual funds, paying premium prices, To buy illiquidity, to buy securities with no liquidity and with no governance rights. In the private market. The only thing you know is when it ends, it will end painfully.”
Bill JanewayJan 2, 2019▶ 6:01a16z Podcast | Good Bubbles, Bad Bubbles -- and Where Unicorns Come from
Insight
Janeway: Low launch costs make spray-and-pray seed investing rational
“This means, on the one hand, a step function increase in the number of startups, in the number of Darwinian hopeful monsters. Most of which will fail. Most of which will fail Pretty fast, and without costing an enormous amount of money, so that at the front en…”
Bill JanewayJan 2, 2019▶ 3:23a16z Podcast | Good Bubbles, Bad Bubbles -- and Where Unicorns Come from
PredictionNot checkable as stated
Janeway: Startup Quality Inevitably Declines When Cheap Capital Is Plentiful
“Again, the people on the other side of the market aren't morons, so the quality inevitably will decline. Inevitably.”
Bill JanewayJan 2, 2019▶ 13:56a16z Podcast | Good Bubbles, Bad Bubbles -- and Where Unicorns Come from
Insight
Janeway: Cash and control are the only hedge against startup uncertainty
“The central theme of the whole first half of my book is that there's only one way to hedge against uncertainty in venture startups. You don't have credit default swaps. You know, you don't have instruments that you can buy to hedge your position. It's two word…”
Bill JanewayJan 2, 2019▶ 20:44a16z Podcast | Good Bubbles, Bad Bubbles -- and Where Unicorns Come from
Insight
Janeway: Venture capital functions as distributed R&D for incumbent corporations
“Well, what I'm saying is that because getting public is so difficult and so rare for venture-backed tech companies that, practically speaking, we should be thinking about that what we're doing is funding distributed research and development for big companies.”
Bill JanewayJan 2, 2019▶ 24:55a16z Podcast | Good Bubbles, Bad Bubbles -- and Where Unicorns Come from
AssertionSupported
Janeway: Billions wasted in mid-2000s VC nanotech and cleantech investments
“Back in the mid-aughties some billions of dollars were wasted in venture guys investing in nanotechnology. Venture guys investing in science for ultimately Clean tech opportunities, but that were way upstream, that took much too long, much too much money, and …”
Bill JanewayJan 2, 2019▶ 26:24a16z Podcast | Good Bubbles, Bad Bubbles -- and Where Unicorns Come from
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